An­other cri­sis com­ing

Taranaki Daily News - - Comment & Opinion -

I do en­joy read­ing the oc­ca­sional Let­ters to the Edi­tor from lo­cal fi­nan­cial pun­dit Mr Steven Lawrence. He presents a rad­i­cally dif­fer­ent opin­ion on fi­nan­cial mat­ters, yet his views and let­ters never seem to at­tract any com­ment or crit­i­cism, least of all from main­stream fi­nanciers.

Now in to­day’s TDN (16 April), on the front page we have an ar­ti­cle over the petty ex­pense of $22,000 for le­gal ad­vice on the pro­posed dis­posal/sale of $35,000,000 of grossly over-val­ued Coun­cil As­set (Golf course land), while tucked away in the mid­dle of the same pa­per, on page 10, in the busi­ness sec­tion, is a short­ened re­port on in­ter­na­tion­al­lyrecog­nised fi­nan­cial ad­viser Ann Pet­ti­for and the rapidly loom­ing Global Fi­nan­cial Cri­sis #2.

And for those who missed the ar­ti­cle, or were not aware of the im­pend­ing in­ter­na­tional fi­nan­cial dilemma the world faces: Since the Global Fi­nan­cial Cri­sis #1 back in 2009, in­ter­na­tional debt has spi­ralled from 125 per cent of Global Do­mes­tic Pro­duc­tion to now sit at over 400 per cent of GDP!

All based on cheap in­ter­na­tional bank sup­plied credit, se­cured against spu­ri­ously over­val­ued as­sets (Land) and bal­loon­ing cor­po­rate (Coun­cil) debt.

De´ja` vu Mr Lawrence?

All Hail to China, the repos­i­tory of the lion’s share of the West­ern World’s trade im­bal­ance.

Tim Busby

Eg­mont Vil­lage

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